One of the largest hedge funds in the world Renaissance Technologies said that its division Medallion Fund can now deal in bitcoin futures.
Renaissance Technologies said it will limit its trading activities to contracts concluded on the Chicago Mercantile Exchange (CME), but it is not yet known whether the company already has open positions. In addition, Renaissance Technologies informed its investors about the risks associated with investing in bitcoin and instruments based on it. The document says:
"Bitcoin is a new and very speculative asset. On this basis, futures on Bitcoin are also extremely volatile and the investment results may vary greatly over time. These instruments carry far greater risks and potential losses than more traditional financial instruments. Such investments should be viewed as more speculative, and potential losses can be up to a total loss of capital".
Medallion Fund is a highly profitable hedge fund, which from 1988 to 2018 brought its investors on average 40% per annum. In addition, the fund, which is managed by $10 billion, since the beginning of the year has grown by 24% and in March brought its investors 9.9% profit. However, it is not yet clear how Renaissance Technologies' accession to bitcoin futures trading will affect the price of bitcoin, as the fund can enter both long and short positions.
Comments
Post a Comment